Brazil country report

Brazil has abundant natural resources and its economy is relatively diversified. & major agricultural power,
Brazil is the world's first producer of coffee, sugar cane and oranges, as well as one of the largest producers of soy.
Brazil attracts many world groups in the food industry and biofuels.
Brazil has the world's largest commercial livestock herd.
Agriculture's contribution to the GDP is relatively small, accounting for only 6.6%, yet the sector represents 40% of its exports.
Forests cover half of the country, with the largest ombrophilous forest in the world situated in the Amazon Basin.
Brazil is the world's fourth largest exporter of timber.

Transcript of "Brazil country report"

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Brazil has abundant natural resources and its economy is relatively diversified. & major agriculturalpower, Brazil is the worlds first producer of coffee, sugar cane and oranges, as well as one of the largestproducers of soy. Brazil attracts many world groups in the food industry and biofuels. Brazil has the worlds largest commercial livestock herd. Agricultures contribution to the GDP is relatively small, accounting for only 6.6%, yet the sectorrepresents 40% of its exports. Forests cover half of the country, with the largest ombrophilous forest in the world situated in theAmazon Basin. Brazil is the worlds fourth largest exporter of timber.

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Brazil has abundant natural resources and its economy is relatively diversified. A major agricultural power, Brazil is the worlds first producer of coffee, sugar cane and oranges, aswell as one of the largest producers of soy. It also attracts many world groups in the food industry and biofuels. Brazil has the worlds largestcommercial livestock herd. Nevertheless, agricultures contribution to the GDP is relatively small, accounting for only 6.6%, yet thesector represents 40% of its exports. Forests cover half of the country, with the largest ombrophilous forest in the world situated in theAmazon Basin. Brazil is the worlds fourth largest exporter of timber.

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Brazil has abundant natural resources and its economy is relatively diversified. A major agricultural power, Brazil is the worlds first producer of coffee, sugar cane and oranges, aswell as one of the largest producers of soy. Brazil attracts many world groups in the food industry and biofuels. Brazil has the worlds largestcommercial livestock herd. Agricultures contribution to the GDP is relatively small, accounting for only 6.6%, yet the sectorrepresents 40% of its exports. Forests cover half of the country, with the largest ombrophilous forest in the world situated in theAmazon Basin. Brazil is the worlds fourth largest exporter of timber.

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Brazil is also a great industrial country. Brazil is the second world exporter of iron and one of the main producers of aluminum. Brazil is aiming to become self-sufficient in the near future. The country is asserting itself more and more in the textile, aeronautics, pharmacy, automobile, steeland chemical industry sectors. Most of the large automobile manufacturers have set up their production plants in the country. The industrial sector contributes more than quarter of the GDP. The tertiary sector represents almost two-thirds of the GDP.

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Brazil is one of the top ten world economic powers. Brazil’s cautious taxation and monetary policies, together with the necessarymicroeconomic reforms, have given the Brazilian economy solid basis allowing it towithstand the global economic crisis. A slight recession in 2009 (-0.2%), the Brazilian economy returned to robust growth in2010, driven by the resumption of international trade and supported by the governmentsstimulus measures. Estimated at 7.5% of the GDP, Brazil enjoys the strongest growth in Latin America. The new president Dilma Rousseff, elected in October 2010, has made a commitment topursue the policies of the former president Lula.

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The growth acceleration plan launched in 2007 includes, among others measures, a vastprogram of infrastructure construction, support for lending and investment funding, as wellas long-term fiscal measures. The government also seeks to reduce the public debt, which amounts to up to 40% of theGDP. Despite the good economic performance, the country continues to face large socialproblems. Brazil remains one of the most unequal countries in the world, with strong regionaldisparities, while crime and criminal violence are also on the rise. The unemployment rate is at around 7% and casual employment is widespread.

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Brazil is worlds number one destination of FDI flows in Latin America. After breaking its FDI record in 2008, the influx slowed down in 2009 due to the global economic crisisbut it has resumed growth since. Brazil has become the 4th international investor among emerging countries and the 1st in Latin America. This countrys appeal to international investors is due to different factors: A market of almost 200 million inhabitants; A booming economy; Easy access to raw materials; and A diversified economy, therefore one less vulnerable to global crises.

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The Brazilian government encourages and promotes FDI. Most of the barriers to foreign investor activity have been removed particularly on thestock market. A very large number of public companies have been privatized and many sectorsderegulated over the last fifteen years.

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Brazil has Universities that perform just as well as their counterparts in the OECD and a very bigmanpower reserve educated to all levels. Brazil has extensive raw material resources. A number of sectors offer good business opportunities. The Brazilian economy is diversified and more and more manufactured goods are produced and exported. The potential of the Brazilian domestic market as well as the low cost of labor are elements which mayattract foreign investors.

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Despite being open to world trade, several administrative barriers cripple international trade. alluring the real against the dollar automatically reduces the countrys competitiveness againstAsian competitors in some sectors. The Labor laws are very onerous, involving substantial costs to foreign companies and keeping agood part of the local business in the informal sector.

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Although foreign trade only represents a quarter of its GDP, Brazil is amongst the 20 top worldexporters. The country still has enormous economic potential. The countrys main trade partners are the EU, the countries of the Mercosur (Common SouthAmerican market which encompasses Argentina, Brazil, Paraguay and Uruguay), the United States andChina. Brazils trade deficit is a surplus and after a drop in trade due to the global economic recession, ithas improved in 2010, a trend which should continue.

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